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Competitiveness vs. Sustainability: An Assessment of Profitability as a Component of an Approach on “Sustainable Competitiveness” in Extensive Farming Systems of Central Spain

Author

Listed:
  • Andrea Baudoin Farah

    () (Agricultural Engineer, Rural Development Consultant, La Paz, Bolivia
    These authors contributed equally to this work.)

  • Almudena Gómez-Ramos

    () (Area of Economics, Sociology and Rural Policies, Department of Agriculture and Forestry Engineering, University of Valladolid, Palencia 34004, Spain
    These authors contributed equally to this work.)

Abstract

The “Europe 2020 Strategy” launched by European Institutions is a commitment to increase growth based on the coexistence of both competitiveness and sustainable development. This paper analyzes the competitiveness of production systems in the cereal steppes of Castile, Spain. An indicator based on each production system’s profitability threshold was built. The diagnostic analysis methodology allowed the identification of 20 production system models related to agrarian, livestock and mixed farming systems. The results show very different levels of competitiveness which are not necessarily related to the farms’ sizes or capitalization levels but mostly to production costs and the farmers’ ages. The response of these models to future input and output price scenarios shows that mixed farms are less dependent on external production factors.

Suggested Citation

  • Andrea Baudoin Farah & Almudena Gómez-Ramos, 2014. "Competitiveness vs. Sustainability: An Assessment of Profitability as a Component of an Approach on “Sustainable Competitiveness” in Extensive Farming Systems of Central Spain," Sustainability, MDPI, Open Access Journal, vol. 6(11), pages 1-27, November.
  • Handle: RePEc:gam:jsusta:v:6:y:2014:i:11:p:8029-8055:d:42341
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    References listed on IDEAS

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    1. Feng Wei & Yu Kong, 2014. "Government Governance, Legal Environment and Sustainable Economic Development," Sustainability, MDPI, Open Access Journal, vol. 6(4), pages 1-16, April.
    2. Onate, J.J. & Atance, I. & Bardaji, I. & Llusia, D., 2007. "Modelling the effects of alternative CAP policies for the Spanish high-nature value cereal-steppe farming systems," Agricultural Systems, Elsevier, vol. 94(2), pages 247-260, May.
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    Cited by:

    1. Laura Piedra-Muñoz & Emilio Galdeano-Gómez & Juan C. Pérez-Mesa, 2016. "Is Sustainability Compatible with Profitability? An Empirical Analysis on Family Farming Activity," Sustainability, MDPI, Open Access Journal, vol. 8(9), pages 1-15, September.
    2. Dorin Badiu & Felix H. Arion & Iulia C. Muresan & Ramona Lile & Viorel Mitre, 2015. "Evaluation of Economic Efficiency of Apple Orchard Investments," Sustainability, MDPI, Open Access Journal, vol. 7(8), pages 1-13, August.
    3. Michal Pohludka & Hana Stverkova & Beata Ślusarczyk, 2018. "Implementation and Unification of the ERP System in a Global Company as a Strategic Decision for Sustainable Entrepreneurship," Sustainability, MDPI, Open Access Journal, vol. 10(8), pages 1-16, August.

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    More about this item

    Keywords

    competitiveness; extensive production systems; cost structure; price scenario; profitability;
    All these keywords.

    JEL classification:

    • Q - Agricultural and Natural Resource Economics; Environmental and Ecological Economics
    • Q0 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - General
    • Q2 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation
    • Q3 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Nonrenewable Resources and Conservation
    • Q5 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics
    • Q56 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environment and Development; Environment and Trade; Sustainability; Environmental Accounts and Accounting; Environmental Equity; Population Growth
    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products

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